Summary
This article explains what a Ponzi scheme is, how to recognize one, and what to do if you suspect you’ve become a victim. You’ll learn where to report it, what information to gather, and why it’s important to act quickly to prevent further losses.
What is a Ponzi scheme?
A Ponzi scheme is a fraudulent setup where new investors are lured in with promises of high, often fixed returns. In reality, the money from new investors is used to pay earlier investors, without any real investments being made.
Ponzi schemes eventually collapse, for example when there aren’t enough new investors or when many people try to withdraw their money at the same time.
How can you recognize a Ponzi scheme?
Ponzi schemes can appear professional and trustworthy. Watch out for the following red flags:
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Promises of high, stable returns without risk.
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Vague or unclear explanations about where the returns come from.
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Issues or delays when trying to withdraw your investment.
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Strong encouragement to recruit others as new investors.
What should you do if you suspect a Ponzi scheme?
If you suspect that you’ve fallen victim to a Ponzi scheme, take the following steps immediately:
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Stop investing immediately and avoid sending any more money.
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Collect as much evidence as possible, such as:
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Screenshots of websites, emails, and messages
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Proof of payments or transactions
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Agreements or other documents
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Report the situation to Bitvavo by sending an email to fraud@bitvavo.com. Attach your evidence and provide a clear description of the situation.
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Report it to the AFM via their online fraud reporting form.
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File a report with the police. Bring all your collected evidence.
Frequently asked questions
How do I know if an investment is safe?
Check if the party is registered with an official regulator like the AFM. Be especially cautious if high returns without risk are promised, and always ask for transparency about how they work.
What should I do if I’m a victim of a Ponzi scheme?
Gather as much evidence as possible, such as payment proofs, emails, and screenshots. Report the case to fraud@bitvavo.com with a clear description and your evidence. Also, report it to the AFM and file a police report.
Does Bitvavo work with parties that offer Ponzi schemes?
No, Bitvavo only works with regulated and reliable partners. We carry out extensive checks to protect your safety.